Financial Performance - HBT Financial, Inc. reported net income of $19.2 million, or $0.61 diluted earnings per share, for Q2 2025, showing a slight increase from $19.1 million in Q1 2025 and $18.1 million in Q2 2024 [2][10] - Adjusted net income for Q2 2025 was $19.8 million, or $0.63 adjusted diluted earnings per share, compared to $19.3 million in Q1 2025 and $18.1 million in Q2 2024 [3][6] - The company achieved an adjusted return on average assets (ROAA) of 1.58% and an adjusted return on average tangible common equity (ROATCE) of 16.02% for Q2 2025 [3][10] Revenue and Income Sources - Net interest income for Q2 2025 was $49.7 million, a 2.0% increase from $48.7 million in Q1 2025 and a 5.6% increase from $47.0 million in Q2 2024 [7][8] - Noninterest income for Q2 2025 was $9.1 million, a 1.8% decrease from $9.3 million in Q1 2025 and a 4.9% decrease from $9.6 million in Q2 2024, primarily due to changes in mortgage servicing rights fair value adjustments [13][14] Asset Quality and Loan Portfolio - Nonperforming assets totaled $6.5 million, or 0.13% of total assets, as of June 30, 2025, compared to $5.6 million (0.11%) in Q1 2025 and $8.8 million (0.17%) in Q2 2024 [20] - Total loans outstanding were $3.35 billion at June 30, 2025, down from $3.46 billion at March 31, 2025, primarily due to seasonal paydowns and higher property sales [18] Capital and Shareholder Returns - The company exceeded all regulatory capital requirements under Basel III, with total capital to risk-weighted assets at 17.74% as of June 30, 2025 [25] - HBT Financial repurchased 135,997 shares of its common stock at a weighted average price of $21.30 during Q2 2025, with $12.1 million remaining under its stock repurchase program [26] Operational Efficiency - The efficiency ratio for Q2 2025 was 53.10%, compared to 53.85% in Q1 2025 and 52.61% in Q2 2024, indicating a slight decline in operational efficiency [36] - Noninterest expense for Q2 2025 was $31.9 million, nearly unchanged from Q1 2025, with a 4.6% increase compared to $30.5 million in Q2 2024 [15][16]

[HBT Financial, Inc. Second Quarter 2025 Financial Results](index=1&type=section&id=HBT%20FINANCIAL%2C%20INC.%20ANNOUNCES%20SECOND%20QUARTER%202025%20FINANCIAL%20RESULTS) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) The company reported strong Q2 2025 earnings with stable asset quality and an expanded net interest margin Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $19.2M | $19.1M | $18.1M | | Diluted EPS | $0.61 | $0.60 | $0.57 | | Adjusted Net Income | $19.8M | $19.3M | $18.1M | | Adjusted Diluted EPS | $0.63 | $0.61 | $0.57 | Q2 2025 Key Performance Ratios | Ratio | Value | | :--- | :--- | | Adjusted ROAA | 1.58% | | Adjusted ROATCE | 16.02% | | Net Interest Margin (Tax-Equivalent) | 4.19% | | Nonperforming Assets to Total Assets | 0.13% | - Tangible book value per share increased by $0.59 during the quarter to **$16.02**, representing a 3.8% quarterly increase and a **17.4% increase** over the last 12 months[4](index=4&type=chunk) - Loans decreased during the quarter due to seasonal paydowns, but management expects **loan growth to resume in Q3 2025**[4](index=4&type=chunk) [Adjusted Net Income (Non-GAAP)](index=2&type=section&id=Adjusted%20Net%20Income) Adjusted net income rose to $19.8 million, a non-GAAP measure used to clarify operational performance - Management believes non-GAAP measures like adjusted net income provide investors with **better insight into operational performance** by excluding certain items[7](index=7&type=chunk) Adjusted Net Income Comparison | Period | Adjusted Net Income | Adjusted Diluted EPS | | :--- | :--- | :--- | | Q2 2025 | $19.8 million | $0.63 | | Q1 2025 | $19.3 million | $0.61 | | Q2 2024 | $18.1 million | $0.57 | [Net Interest Income and Net Interest Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income and the net interest margin both increased due to improved yields and lower funding costs Net Interest Income (NII) and Margin (NIM) Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $49.7M | $48.7M | $47.0M | | NIM (Tax-Equivalent) | 4.19% | 4.16% | 4.00% | - The QoQ increase in NII was primarily due to **improved yields on debt securities and lower funding costs**[8](index=8&type=chunk) - The YoY increase in NII was driven by lower funding costs, improved yields, higher loan balances, and a **$0.5 million increase in nonaccrual interest recoveries**[9](index=9&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income decreased to $9.1 million, primarily driven by a negative MSR fair value adjustment Noninterest Income Comparison | Period | Noninterest Income | | :--- | :--- | | Q2 2025 | $9.1 million | | Q1 2025 | $9.3 million | | Q2 2024 | $9.6 million | - The primary driver for the decrease from both prior periods was a **negative MSR fair value adjustment of $0.8 million** in Q2 2025[11](index=11&type=chunk)[12](index=12&type=chunk) - Partially offsetting the QoQ decrease were seasonal increases in **card income ($0.2M)** and **gains on sale of mortgage loans ($0.2M)**[11](index=11&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Noninterest expense remained stable quarter-over-quarter at $31.9 million but rose from the prior year - QoQ noninterest expense was stable as a **$0.6 million decrease in salaries** was offset by increases in other expenses and employee benefits[13](index=13&type=chunk) - YoY noninterest expense increased by 4.6%, mainly due to a **$0.7 million rise in employee benefits** from higher medical costs[14](index=14&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) The effective tax rate rose to 27.0% in Q2 2025 due to a nonrecurring expense and a non-repeating tax benefit - The effective tax rate increased to **27.0%** in Q2 2025, compared to 25.2% in Q1 2025[15](index=15&type=chunk) - The increase was driven by a **$0.3 million nonrecurring tax expense** and the absence of a prior quarter's $0.2 million tax benefit[15](index=15&type=chunk) [Loan Portfolio](index=3&type=section&id=Loan%20Portfolio) Total loans decreased to $3.35 billion, driven by property sale paydowns and seasonal line reductions Total Loans Outstanding | Date | Total Loans (before allowance) | | :--- | :--- | | June 30, 2025 | $3.35 billion | | March 31, 2025 | $3.46 billion | | June 30, 2024 | $3.39 billion | - The **$113.6 million quarterly decrease** was mainly due to $72.0 million in paydowns from property sales and a $25.1 million seasonal reduction in C&I lines[16](index=16&type=chunk) [Deposits](index=3&type=section&id=Deposits) Total deposits decreased to $4.31 billion, primarily due to outflows for depositor tax payments Total Deposits | Date | Total Deposits | | :--- | :--- | | June 30, 2025 | $4.31 billion | | March 31, 2025 | $4.38 billion | | June 30, 2024 | $4.32 billion | - The **$78.1 million quarterly decrease** was mainly due to higher outflows for depositor tax payments and lower balances in existing retail accounts[17](index=17&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality remained strong and stable, with nonperforming assets at a low 0.13% of total assets Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Assets / Total Assets | 0.13% | 0.11% | 0.17% | | Allowance for Credit Losses / Total Loans | 1.24% | 1.22% | 1.21% | | Net Charge-offs / Average Loans (Annualized) | 0.12% | 0.05% | 0.08% | - The provision for credit losses in Q2 2025 was **$0.5 million**, reflecting a mix of economic forecast changes and portfolio-specific adjustments[19](index=19&type=chunk) - Of the $5.6 million in nonperforming loans, **$1.9 million were either wholly or partially guaranteed by the U.S. government**[18](index=18&type=chunk) [Capital](index=4&type=section&id=Capital) The company's capital position strengthened, with all regulatory ratios increasing and share repurchases continuing Capital Adequacy Ratios (June 30, 2025) | Ratio | Company Ratio | Requirement with Buffer | | :--- | :--- | :--- | | Total capital to risk-weighted assets | 17.74% | 10.50% | | Tier 1 capital to risk-weighted assets | 15.60% | 8.50% | | Common equity tier 1 capital ratio | 14.26% | 7.00% | | Tier 1 leverage ratio | 11.86% | 4.00% | - The ratio of tangible common equity to tangible assets increased to **10.21%** from 9.73% at the end of Q1 2025[22](index=22&type=chunk) - The company repurchased 135,997 shares, with **$12.1 million remaining available for repurchase** under its program[22](index=22&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) [Unaudited Consolidated Financial Summary](index=7&type=section&id=Unaudited%20Consolidated%20Financial%20Summary) This section provides a comprehensive overview of HBT Financial's unaudited consolidated financial results Consolidated Financial Summary - Q2 2025 | Metric | Q2 2025 | | :--- | :--- | | Net Income | $19.2M | | Diluted EPS | $0.61 | | Return on Average Assets | 1.53% | | Return on Average Stockholders' Equity | 13.47% | | Net Interest Margin | 4.14% | | Total Assets (at period end) | $5.02B | | Total Loans (at period end) | $3.35B | | Total Deposits (at period end) | $4.31B | [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) The company reported net income of $19.2 million on net interest income of $49.7 million for Q2 2025 Detailed Income Statement - Q2 2025 (in thousands) | Line Item | Q2 2025 | | :--- | :--- | | Total interest and dividend income | $63,919 | | Total interest expense | $14,261 | | **Net interest income** | **$49,658** | | Provision for credit losses | $526 | | Total noninterest income | $9,140 | | Total noninterest expense | $31,914 | | **Net income** | **$19,230** | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets were $5.02 billion as of June 30, 2025, supported by $4.31 billion in deposits Balance Sheet Summary (in thousands) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Assets | $5,018,398 | $5,092,192 | | Loans, net of allowance | $3,306,552 | $3,419,667 | | Total Deposits | $4,306,531 | $4,384,590 | | Total Stockholders' Equity | $580,897 | $565,057 | [Loan and Deposit Composition](index=11&type=section&id=Loan%20and%20Deposit%20Composition) The loan portfolio is led by commercial real estate, while the deposit base is 76% interest-bearing - As of June 30, 2025, the largest loan categories were **Commercial Real Estate - Non-owner Occupied ($907.1M)** and **Multi-family ($453.8M)**[38](index=38&type=chunk) - Total deposits of $4.31 billion were composed of **24% noninterest-bearing** and **76% interest-bearing** deposits[38](index=38&type=chunk) [Average Balances, Yields, and Rates](index=12&type=section&id=Average%20Balances%2C%20Yields%2C%20and%20Rates) The net interest rate spread widened to 3.64% in Q2 2025 as the cost of funds decreased Q2 2025 Average Yields and Costs | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Yield on Interest-Earning Assets | 5.33% | 5.34% | 5.28% | | Cost of Interest-Bearing Liabilities | 1.69% | 1.72% | 1.85% | | Net Interest Rate Spread | 3.64% | 3.62% | 3.43% | | Cost of Funds | 1.29% | 1.32% | 1.42% | [Asset Quality Details](index=14&type=section&id=Asset%20Quality%20Details) Total nonperforming assets remained low at $6.5 million, with an allowance for credit losses of $41.7 million Nonperforming Assets (in thousands) | Category | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Nonperforming loans | $5,624 | $5,106 | $8,432 | | Foreclosed assets | $890 | $460 | $320 | | **Total nonperforming assets** | **$6,514** | **$5,566** | **$8,752** | Allowance for Credit Losses Activity - Q2 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | Beginning Balance (Mar 31, 2025) | $42,111 | | Provision for credit losses | $595 | | Charge-offs | ($1,252) | | Recoveries | $205 | | **Ending Balance (June 30, 2025)** | **$41,659** | [Reconciliation of Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Reconciliation: Adjusted Net Income and Adjusted ROA](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%E2%80%93%20Adjusted%20Net%20Income%20and%20Adjusted%20Return%20on%20Average%20Assets) GAAP net income of $19.2 million is reconciled to adjusted net income of $19.8 million for Q2 2025 Reconciliation of Net Income to Adjusted Net Income - Q2 2025 (in thousands) | Line Item | Amount | | :--- | :--- | | Net income (GAAP) | $19,230 | | MSR fair value adjustment | ($751) | | Gains (losses) on closed branch premises | ($50) | | Tax effect of adjustments | $228 | | **Adjusted net income (Non-GAAP)** | **$19,803** | [Reconciliation: Adjusted Earnings Per Share](index=15&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%E2%80%93%20Adjusted%20Earnings%20Per%20Share%20%E2%80%94%20Basic%20and%20Diluted) Adjusted diluted EPS was $0.63 for Q2 2025, compared to the GAAP diluted EPS of $0.61 EPS vs. Adjusted EPS - Q2 2025 | Metric | Value | | :--- | :--- | | Earnings per share - diluted (GAAP) | $0.61 | | Adjusted earnings per share - diluted (Non-GAAP) | $0.63 | [Reconciliation: Pre-Provision Net Revenue](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%E2%80%93%20Pre-Provision%20Net%20Revenue) Adjusted pre-provision net revenue (PPNR) was $27.7 million, an increase from the prior quarter Pre-Provision Net Revenue (PPNR) - Q2 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Pre-provision net revenue (GAAP-based) | $26,884 | | Adjustments | $801 | | **Adjusted pre-provision net revenue (Non-GAAP)** | **$27,685** | [Reconciliation: Net Interest Margin (Tax-equivalent Basis)](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%E2%80%93%20Net%20Interest%20Income%20(Tax-equivalent%20Basis)%20and%20Net%20Interest%20Margin%20(Tax-equivalent%20Basis)) The tax-equivalent adjustment resulted in a net interest margin of 4.19% for Q2 2025 NIM vs. NIM (Tax-equivalent) - Q2 2025 | Metric | Value | | :--- | :--- | | Net interest margin (GAAP) | 4.14% | | Tax-equivalent adjustment | 0.05% | | **Net interest margin (tax-equivalent basis)** | **4.19%** | [Reconciliation: Efficiency Ratio (Tax-equivalent Basis)](index=17&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%E2%80%93%20Efficiency%20Ratio%20(Tax-equivalent%20Basis)%20and%20Adjusted%20Efficiency%20Ratio%20(Tax-equivalent%20Basis)) The adjusted efficiency ratio improved to 51.91% on a tax-equivalent basis for Q2 2025 Efficiency Ratios - Q2 2025 | Ratio | Value | | :--- | :--- | | Efficiency ratio (GAAP) | 53.10% | | Efficiency ratio (tax-equivalent basis) | 52.61% | | Adjusted efficiency ratio (tax-equivalent basis) | 51.91% | [Reconciliation: Tangible Common Equity and Tangible Book Value](index=18&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%E2%80%93%20Ratio%20of%20Tangible%20Common%20Equity%20to%20Tangible%20Assets%20and%20Tangible%20Book%20Value%20Per%20Share) Tangible book value per share increased to $16.02, and the TCE to TA ratio improved to 10.21% Tangible Book Value Per Share | Date | Tangible Book Value Per Share | | :--- | :--- | | June 30, 2025 | $16.02 | | March 31, 2025 | $15.43 | | June 30, 2024 | $13.64 | Tangible Common Equity to Tangible Assets | Date | Ratio | | :--- | :--- | | June 30, 2025 | 10.21% | | March 31, 2025 | 9.73% | | June 30, 2024 | 8.74% | [Reconciliation: Return on Average Tangible Common Equity (ROATCE)](index=18&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%E2%80%93%20Return%20on%20Average%20Tangible%20Common%20Equity) The adjusted return on average tangible common equity (ROATCE) was 16.02% for Q2 2025 ROATCE and Adjusted ROATCE (Annualized) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | ROATCE | 15.55% | 16.20% | 17.21% | | Adjusted ROATCE | 16.02% | 16.36% | 17.27% |

Company Overview - HBT Financial is expected to report quarterly earnings of $0.60 per share, reflecting a year-over-year increase of +5.3% [3] - Revenues are anticipated to reach $58.85 million, which is a 3.9% increase from the same quarter last year [3] Earnings Expectations - The earnings report is scheduled for release on July 21, and the stock price may rise if actual results exceed expectations [2] - Conversely, if the results fall short, the stock may decline [2] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] - HBT Financial has an Earnings ESP of +1.67%, suggesting a recent bullish sentiment among analysts [12] Historical Performance - In the last reported quarter, HBT Financial exceeded the expected earnings of $0.57 per share by delivering $0.61, resulting in a surprise of +7.02% [13] - The company has beaten consensus EPS estimates in the last four quarters [14] Comparative Analysis - Webster Financial, another player in the Zacks Banks - Northeast industry, is expected to post earnings of $1.41 per share, indicating a year-over-year change of +11.9% [18] - Webster Financial's revenues are projected to be $711.74 million, up 15.8% from the previous year [18]

Company Overview - HBT Financial, Inc. is headquartered in Bloomington, Illinois, and serves as the holding company for Heartland Bank and Trust Company, with banking operations dating back to 1920 [2] - The company offers a wide range of financial products and services to consumers, businesses, and municipal entities across Illinois and eastern Iowa, operating 66 full-service branches [2] - As of March 31, 2025, HBT Financial reported total assets of $5.1 billion, total loans of $3.5 billion, and total deposits of $4.4 billion [2] Upcoming Financial Results - HBT Financial will announce its second quarter 2025 financial results before the market opens on July 21, 2025 [1] - The press release and investor presentation will be available on the company's investor relations website [1]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) HBT Financial, Inc.'s consolidated financial statements report total assets of **$5.09 billion** and Q1 2025 net income of **$19.1 million**, up from **$15.3 million** in Q1 2024, driven by increased net interest income Consolidated Balance Sheet Highlights | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Assets | $5,092,192 | $5,032,902 | | Loans, net | $3,419,667 | $3,424,102 | | Total Deposits | $4,384,590 | $4,318,254 | | Total Liabilities | $4,527,135 | $4,488,297 | | Total Stockholders' Equity | $565,057 | $544,605 | Consolidated Income Statement Highlights (Three Months Ended March 31) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $48,708 | $46,688 | | Provision for Credit Losses | $576 | $527 | | Noninterest Income | $9,306 | $5,626 | | Noninterest Expense | $31,935 | $31,268 | | Net Income | $19,075 | $15,258 | | Diluted EPS | $0.60 | $0.48 | [Note 2 – Securities](index=15&type=section&id=Note%202%20%E2%80%93%20Securities) As of March 31, 2025, the company held **$706.1 million** in AFS and **$490.4 million** in HTM debt securities, with AFS having **$49.7 million** in gross unrealized losses, which management expects to recover Debt Securities Portfolio (March 31, 2025) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | **Available-for-Sale** | $754,493 | $706,135 | | U.S. Treasury & Agency | $163,299 | $154,643 | | Municipal | $149,697 | $132,338 | | Mortgage-backed & Corporate | $441,497 | $419,154 | | **Held-to-Maturity** | $490,398 | $445,762 | - As of March 31, 2025, **$429.0 million** in debt securities were pledged to secure public deposits, repurchase agreements, and other borrowings[37](index=37&type=chunk) - The company realized **$3.4 million** in gross losses from debt security sales for Q1 2024, with no sales in Q1 2025[47](index=47&type=chunk) [Note 3 – Loans and Related Allowance for Credit Losses](index=20&type=section&id=Note%203%20%E2%80%93%20Loans%20and%20Related%20Allowance%20for%20Credit%20Losses) Total loans were **$3.46 billion** as of March 31, 2025, with an ACL of **$42.1 million** (1.22% of loans), while nonaccrual loans decreased to **$5.1 million**, and the portfolio remains concentrated in commercial real estate, residential, and C&I loans Loan Portfolio Composition | Loan Category | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Commercial real estate - non-owner occupied | $891.0 | $899.6 | | One-to-four family residential | $455.4 | $464.0 | | Commercial and industrial | $441.3 | $428.4 | | Multi-family | $424.1 | $431.5 | | **Total Loans** | **$3,461.8** | **$3,466.1** | Allowance for Credit Losses Activity (Q1 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Beginning Balance (Dec 31, 2024) | $42,044 | | Provision for credit losses | $496 | | Charge-offs | ($665) | | Recoveries | $236 | | **Ending Balance (Mar 31, 2025)** | **$42,111** | - Nonaccrual loans decreased to **$5.1 million** at March 31, 2025, from **$7.7 million** at year-end 2024, while loans past due 30-89 days increased to **$10.4 million** from **$3.9 million**[69](index=69&type=chunk) [Note 6 – Deposits](index=33&type=section&id=Note%206%20%E2%80%93%20Deposits) Total deposits increased to **$4.38 billion** at March 31, 2025, from **$4.32 billion** at year-end 2024, driven by growth in noninterest-bearing and interest-bearing demand deposits Deposit Composition | Deposit Type | March 31, 2025 (in millions) | December 31, 2024 (in millions) | | :--- | :--- | :--- | | Noninterest-bearing | $1,065.9 | $1,046.4 | | Interest-bearing demand | $1,143.7 | $1,099.1 | | Money market | $812.1 | $820.8 | | Savings | $575.6 | $566.5 | | Time | $787.3 | $785.4 | | **Total Deposits** | **$4,384.6** | **$4,318.3** | [Note 11 – Regulatory Capital](index=42&type=section&id=Note%2011%20%E2%80%93%20Regulatory%20Capital) As of March 31, 2025, HBT Financial, Inc. and its subsidiary were 'well capitalized', with a Common Equity Tier 1 capital ratio of **13.48%** and a Total Capital ratio of **16.85%**, exceeding regulatory minimums Regulatory Capital Ratios (Consolidated) - March 31, 2025 | Ratio | Actual (%) | Required for Adequacy (%) | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 13.48 | 4.50 | | Tier 1 Capital | 14.77 | 6.00 | | Total Capital | 16.85 | 8.00 | | Tier 1 Leverage | 11.64 | 4.00 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported Q1 2025 net income of **$19.1 million**, a **25.0%** increase, driven by higher net interest income and no prior-year security losses, with net interest margin expanding to **4.12%** and nonperforming assets decreasing by **30.6%** to **$5.6 million** - Net income for Q1 2025 increased by **$3.8 million (25.0%)** year-over-year, primarily due to the absence of **$3.4 million** in prior-year security sale losses and a **$2.0 million** increase in net interest income[187](index=187&type=chunk)[189](index=189&type=chunk) Key Performance Ratios (Q1 2025 vs Q1 2024) | Ratio | Q1 2025 (%) | Q1 2024 (%) | | :--- | :--- | :--- | | Net Interest Margin | 4.12 | 3.94 | | Return on Average Assets | 1.54 | 1.23 | | Return on Average Stockholders' Equity | 13.95 | 12.42 | | Efficiency Ratio | 53.85 | 58.41 | - Total nonperforming assets decreased by **30.6%** to **$5.6 million** at March 31, 2025, from **$8.0 million** at year-end 2024, mainly due to a **$1.6 million** nonaccrual commercial real estate loan payoff[228](index=228&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=84&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate risk, with an asset-sensitive balance sheet where a **100 bps** rate increase is projected to boost NII by **2.8%** and EVE by **9.6%**, while a decrease would reduce them Interest Rate Sensitivity Analysis (March 31, 2025) | Change in Interest Rates (bps) | Estimated % Change in EVE | Estimated % Change in NII (Year 1) | | :--- | :--- | :--- | | +200 | +17.9% | +4.7% | | +100 | +9.6% | +2.8% | | -100 | -11.5% | -4.6% | | -200 | -23.6% | -6.4% | - The cumulative deposit beta was **23.6%** during the rising rate cycle (Q4 2021 - Q2 2024) and **15.1%** since the falling rate cycle began in Q3 2024[294](index=294&type=chunk) [Controls and Procedures](index=86&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 2025 - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[299](index=299&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter[300](index=300&type=chunk) [PART II. OTHER INFORMATION](index=87&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=87&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal actions incidental to its business, which management does not expect to materially affect its financial condition [Risk Factors](index=87&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024, were reported - No material changes to risk factors were reported since the last Annual Report on Form 10-K[302](index=302&type=chunk) [Issuer Purchases of Equity Securities](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company did not repurchase any common stock in Q1 2025, with a **$15.0 million** stock repurchase authorization remaining available until January 1, 2026 - No shares were repurchased in Q1 2025; a **$15.0 million** stock repurchase authorization remains available until January 1, 2026[304](index=304&type=chunk)[305](index=305&type=chunk)

Group 1 - HBT Financial's shares have increased by approximately 21% over the past year, indicating strong performance [1] - The company possesses a robust capital position and an excellent deposit base, which has allowed it to sustain higher margins [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories in achieving outsized returns with a favorable risk/reward profile [1]

Core Insights - HBT Financial reported a revenue of $58.01 million for the quarter ended March 2025, reflecting a year-over-year increase of 10.9% and surpassing the Zacks Consensus Estimate by 2.32% [1] - The earnings per share (EPS) for the quarter was $0.61, up from $0.57 in the same quarter last year, resulting in an EPS surprise of 7.02% compared to the consensus estimate [1] Financial Performance Metrics - Net charge-offs to average loans were reported at 0.1%, matching the average estimate from analysts [4] - The efficiency ratio was 53.9%, better than the estimated 55.2% [4] - The net interest margin (FTE) stood at 4.2%, exceeding the average estimate of 4% [4] - Average balances of interest-earning assets were $4.80 billion, slightly below the estimated $4.81 billion [4] - Service charges on deposit accounts were $1.94 million, slightly below the estimated $1.95 million [4] - Card income was reported at $2.55 million, lower than the average estimate of $2.78 million [4] - Other noninterest income was $0.80 million, below the estimated $1.02 million [4] - Total noninterest income reached $9.31 million, slightly above the average estimate of $9.29 million [4] - Mortgage servicing income was $0.99 million, below the estimated $1.03 million [4] - Wealth management fees were reported at $2.84 million, slightly below the average estimate of $2.85 million [4] - Net interest income (FTE) was $49.25 million, exceeding the average estimate of $47.72 million [4] Stock Performance - HBT Financial's shares have returned -3.3% over the past month, compared to a -5.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

HBT Financial (HBT) came out with quarterly earnings of $0.61 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.02%. A quarter ago, it was expected that this bank holding company would post earnings of $0.58 per share when it actually produced earnings of $0.62, delivering a surprise of 6.90%.Over the last four quarters, the ...

Core Points - HBT Financial, Inc. reported a net income of $19.1 million, or $0.60 diluted earnings per share, for Q1 2025, a decrease from $20.3 million, or $0.64 per share in Q4 2024, but an increase from $15.3 million, or $0.48 per share in Q1 2024 [2][4][9] - The company expressed confidence in its performance for 2025 despite economic uncertainties, citing strong profitability and a solid balance sheet [3][4] - Adjusted net income for Q1 2025 was $19.3 million, or $0.61 per diluted share, slightly down from $19.5 million, or $0.62 per share in Q4 2024, and up from $18.1 million, or $0.57 per share in Q1 2024 [6][9] Financial Performance - Net interest income for Q1 2025 was $48.7 million, a 2.8% increase from $47.4 million in Q4 2024, and a 4.3% increase from $46.7 million in Q1 2024 [7][8] - The net interest margin for Q1 2025 was 4.12%, up from 3.96% in Q4 2024 and 3.94% in Q1 2024 [9][11] - Noninterest income decreased by 20.0% to $9.3 million in Q1 2025 from $11.6 million in Q4 2024, but increased by 65.4% from $5.6 million in Q1 2024 [13][14] Asset Quality - Nonperforming assets totaled $5.6 million, or 0.11% of total assets, down from $8.0 million, or 0.16% in Q4 2024, and $9.9 million, or 0.20% in Q1 2024 [21] - The company recorded net charge-offs of $0.4 million, or 0.05% of average loans on an annualized basis, compared to $0.7 million, or 0.08% in Q4 2024 [23] - The allowance for credit losses was 1.22% of total loans as of March 31, 2025, compared to 1.21% at the end of Q4 2024 [24] Capital Position - As of March 31, 2025, the company exceeded all regulatory capital requirements under Basel III, with a total capital to risk-weighted assets ratio of 16.85% [25] - Tangible book value per share increased by $0.63 to $15.43 as of March 31, 2025, reflecting a 4.3% increase for the quarter and a 17.0% increase year-over-year [4][25] - The company did not repurchase shares during Q1 2025, maintaining $15.0 million available under its stock repurchase program [26] Loan and Deposit Trends - Total loans outstanding were $3.46 billion at March 31, 2025, nearly unchanged from $3.47 billion at December 31, 2024, but up from $3.35 billion at March 31, 2024 [18] - Total deposits increased to $4.38 billion at March 31, 2025, from $4.32 billion at December 31, 2024, and $4.36 billion at March 31, 2024 [19]

Financial Performance - Net income for Q1 2025 was $19.1 million, or $0.60 diluted earnings per share, compared to $20.3 million, or $0.64 per diluted share in Q4 2024, and $15.3 million, or $0.48 per diluted share in Q1 2024[3][6] - Adjusted net income for Q1 2025 was $19.3 million, or $0.61 adjusted diluted earnings per share, compared to $19.5 million, or $0.62 adjusted diluted earnings per share in Q4 2024, and $18.1 million, or $0.57 adjusted diluted earnings per share in Q1 2024[7] - Net income for the quarter was $19,075,000, up from $15,258,000 in the prior year, reflecting a year-over-year increase of 25.5%[31] - Earnings per share (diluted) for Q1 2025 was $0.60, compared to $0.48 for the same period in 2024, marking a 25% increase[31] - Adjusted earnings per share (EPS) for Q1 2025 was $0.61, up from $0.57 in Q1 2024, reflecting a 7% increase[51] Income and Revenue - Net interest income increased by 2.8% to $48.7 million in Q1 2025 from $47.4 million in Q4 2024, and by 4.3% from $46.7 million in Q1 2024[8][9] - For the three months ended March 31, 2025, net interest income was $48,708,000, an increase from $46,688,000 for the same period in 2024, representing a growth of 4.4%[31] - Total interest and dividend income for Q1 2025 was $63,138,000, an increase of 2.0% from $62,798,000 in Q4 2024 and up 1.9% from $61,961,000 in Q1 2024[34] - Net interest income for Q1 2025 reached $48,708,000, an increase from $46,688,000 in Q1 2024, representing a growth of 4.3%[52] Noninterest Income - Noninterest income decreased by 20.0% to $9.3 million in Q1 2025 from $11.6 million in Q4 2024, but increased by 65.4% from $5.6 million in Q1 2024[11][12] - Noninterest income for the quarter was $9,306,000, a decrease from $11,630,000 in the previous quarter, representing a decline of 20%[31] - Total noninterest income decreased to $9,306,000 in Q1 2025 from $11,630,000 in Q4 2024, a decline of 20.0%[34] Assets and Loans - Total loans outstanding were $3.46 billion at March 31, 2025, nearly unchanged from $3.47 billion at December 31, 2024, and up from $3.35 billion at March 31, 2024[16] - Total assets as of March 31, 2025, were $5,092,192,000, an increase from $5,032,902,000 at the end of Q4 2024, reflecting a growth of 1.2%[36] - Commercial and industrial loans increased to $441,261,000 in Q1 2025 from $428,389,000 in Q4 2024, a growth of 3.0%[38] Deposits - Total deposits increased to $4.38 billion at March 31, 2025, from $4.32 billion at December 31, 2024, and $4.36 billion at March 31, 2024[17] - Total deposits increased to $4,384,590,000 in Q1 2025 from $4,318,254,000 in Q4 2024, marking a growth of 1.5%[38] - Noninterest-bearing deposits rose to $1,065,874,000 in Q1 2025, compared to $1,046,405,000 in Q4 2024, an increase of 1.3%[38] Asset Quality - Nonperforming assets decreased to $5.6 million, or 0.11% of total assets, at March 31, 2025, down from $8.0 million, or 0.16% at December 31, 2024[18] - Nonperforming loans to loans ratio improved to 0.15%, down from 0.29% in the same quarter last year, indicating better asset quality[31] - Nonaccrual loans to loans ratio improved to 0.15% as of March 31, 2025, compared to 0.22% at December 31, 2024[45] Credit Losses - The provision for credit losses was $576,000, compared to $527,000 in the same period last year, indicating a 9.3% increase[31] - The allowance for credit losses was 1.22% of total loans at March 31, 2025, compared to 1.21% at December 31, 2024[21] - The allowance for credit losses increased to $42,111 thousand as of March 31, 2025, compared to $42,044 thousand at December 31, 2024, indicating a slight increase of 0.16%[45] Capital and Efficiency - The Company exceeded all regulatory capital requirements under Basel III, with total capital to risk-weighted assets at 16.85% as of March 31, 2025[22] - Total capital to risk-weighted assets was 16.85%, up from 15.79% a year ago, reflecting a stronger capital position[31] - The efficiency ratio was 53.85%, an increase from 58.41% in the same quarter last year, indicating improved operational efficiency[31] - The return on average assets for the three months ended March 31, 2025, was 1.54%, slightly down from 1.61% in the previous quarter[48] - Tangible common equity increased to $488,089,000 in Q1 2025 from $416,889,000 in Q1 2024, a growth of 17.1%[58] - Return on average tangible common equity for Q1 2025 was 16.20%, up from 14.83% in Q1 2024, indicating stronger profitability[59] Stock Repurchase - The Board of Directors authorized a stock repurchase program of up to $15.0 million, with $15.0 million remaining as of March 31, 2025[22]